Mechanics Liens in Ohio.

Mechanics' Liens are tools to be utilized for the benefit and protection of contractors, subcontractors, suppliers or materialmen and laborers. The laws of Ohio regarding Mechanics' Liens underwent a dramatic change, effective as of January 1, 1992.

Scope of Laws

The Mechanics' Lien Laws cover almost every conceivable building project, including real estate [R.C.[ss] 1311.02]; oil or gas wells [R.C.[ss] 1311.021]; street, turnpike, road, sidewalk, way, drain, ditch or sewer [R.C.[ss] 1311.03]; mines [R.C.[ss] 1311.23]; railroads [R.C.[ss] 1311.39]; and condominium properties [R.C.[ss] 5311.13].

The Lien Laws of Ohio differ for private and public improvements, and while there are certain similarities, the significant differences will be noted. On a Public Improvement Project, in addition to an Attested Account under the Mechanics' Lien Laws, Ohio also recognizes claims against sureties or bonding companies who have provided mandatory bonds for Public Improvement work, as well as protections/benefits under the Prompt Pay Law (Ohio Prompt Pay Act). The intent of the Ohio Prompt Pay Law is to require contractors to pay subcontractors and material suppliers on a timely basis.

Under the Prompt Pay Law [R.C.[ss]4113.61], a contractor is required to pay subcontractors and material suppliers within 10 days of the receipt of payment from the owner--regardless of any understanding or agreement to the contrary. It you, as a material supplier or subcontractor, invoiced the contractor and have not been paid within the 10-day period, you are entitled to recover interest at the rate of 18 percent (beginning on the 11th day from the date the contractor receives payment) and in addition, the prevailing party may recover attorney's fees.

Although the Mechanics' Lien Laws also apply to residential properties (i.e. home construction projects), the focus will be on Commercial or Public Works Projects.

Distinctive Features of Ohio Law